PALMOILMAGAZINE, KUALA LUMPUR — Crude palm oil (CPO) prices on the Malaysian exchange moved higher in Thursday’s trading session (January 22, 2026), supported by expectations of firmer demand and growing concerns over possible production constraints.
Market sentiment was lifted by speculation that the United States may soon finalize new biofuel regulations, a move widely expected to boost demand for vegetable oils, including palm oil, as biodiesel feedstock. At the same time, the prospect of declining production in key growing regions added a supply-side catalyst to the rally.
According to a Reuters report, the benchmark April 2026 CPO contract on the Bursa Malaysia Derivatives Exchange rose RM36 per metric ton, or about 0.87%, to RM4,190 per ton at the midday break, equivalent to around US$1,036.10 per ton.
Traders said the combination of tightening supply expectations and improving energy-sector demand outlook encouraged a more aggressive stance in the market, with participants increasing exposure to palm oil contracts amid a more constructive short-term outlook.
The strength in Malaysian palm oil prices was mirrored across global vegetable oil markets. On the Dalian Commodity Exchange, China’s most-active soyoil contract edged up about 0.8%, while palm oil futures climbed 1.39%. Meanwhile, soyoil prices on the Chicago Board of Trade (CBOT) also moved slightly higher, gaining around 0.04%.
Market analysts noted that the synchronized gains across vegetable oil markets reflect continued optimism toward the sector. Beyond seasonal and weather-related production factors, investors remain closely focused on global energy policy developments—particularly in the United States—which could expand the role of vegetable oils in renewable fuel blending.
Also Read: Malaysia’s Palm Oil Exports End 2025 on Stronger Note as Inventories Climb Above 3 Million Tonnes
With these dynamics in play, CPO prices are seen as having room to remain on an upward trajectory in the near term, provided there are no fresh pressures from global macroeconomic conditions or a sudden surge in supply. (P3)
